Oops — prices went up today, and I have only a 1/4 tank. Earlier today, I repeated my observation that Wholesale energy prices have fallen dramatically. This was true in the Chicago market, too, until, well, today. Wholesale prices in Chicago are 15-18 cents higher than in New York right now. This is keeping retail gas prices high in Grand Rapids. It seems like everytime someone at a refinery sneezes, the wholesale prices in Chicago go up. SO START BUILDING ANOTHER REFINERY! I’ll repeat my prediction from earlier today: They’ll be taking 2 cents off the price every day, starting on Saturday.
Wholesale energy prices fell dramatically last week. I expect this to be reflected in pump prices by the end of this week. I predict $1.40 by Friday. WRONG! On Halloween morning, prices in Standale reset to $1.58. This one doesn’t make a lot of sense to me.
I’ve got a temporary source of Chicago wholesale prices. They are 93 cents today, which corresponds to $1.58 a gallon (with a 20-cent margin.) As that is the current price, more or less, I predict prices to gently fall this week, with no price hike. CORRECT! In fact, prices seemed to reset last week at $1.49.
Prices didn’t drop much if at all this weekend. I was surprised to see that prices in Allendale have now gone up to match the Grand Rapids Prices. Meanwhile, futures prices are climbing today, and I’m hearing about some possible supply problems in the Midwest. All of a sudden, I’ve got a bad feeling about all of this, and I would place the probability of another(!) price hike this week at 75%. CORRECT, although the price hike was relatively mild.
With the end of summer, prices should be dropping sharply, but hurricanes, a refinery fire, and Iraq tensions have kept them up. Although Congress has spoken, I don’t think we’ll start with Iraq until after the elections, so I’m going out on a limb here and predicting that prices drop 1-3 cents per day for a while. Like last week, I’m pulling this prediction as new info comes in.
I heard this morning about a refinery fire this weekend in Toledo. It is keeping wholesale prices in the region higher than elsewhere in the country, so we could be in trouble, price-wise. No prediction for now, but be prepared for a quick fill-up if you see one station price unleaded above $1.60. Prices went up to $1.55 on Thursday.